On the other hand, when the number of futures warehouse receipts decreases, the inventory in the futures warehouse decreases, resulting in a shortage of deliverable goods, which leads to traders' expectation of future prices and a large number of purchases in the futures market, leading to an increase in futures prices.
Of course, the main force is to change the inventory quantity announced by the exchange by registering and canceling warehouse receipts, so as to achieve the purpose of manipulating the futures price trend. For example, when the main force wants the price to rise, it will cancel a large number of registered warehouse receipts, resulting in the illusion of insufficient deliverable goods. On the contrary, when the main force wants the price to fall, they will re-register the warehouse receipt, creating the illusion that the goods will increase.
The standard warehouse receipt of futures is a physical delivery certificate with the contracted quality issued by the delivery warehouse designated by the futures exchange in accordance with the procedures stipulated by the exchange. Because the standard warehouse receipt of futures can be used as a circulation tool, as collateral for loans and as collateral for delivery of futures contracts.
The standard warehouse receipt shall take effect from the date of issuance by the exchange. Registered warehouse receipt means that the spot dealer delivers the goods that meet the delivery standards to the delivery warehouse of the exchange. After the delivery warehouse passes the inspection, it will issue a standard warehouse receipt to the holder and go through the registration formalities with the delivery department of the exchange. According to the relevant regulations, only when the goods meet the futures delivery conditions and are inspected and registered in the warehouse can they become warehouse receipts and participate in futures trading.
Standard warehouse receipt is an important part of futures inventory data and one of the important information bases for judging market ups and downs. It is reported that foreign exchanges such as London Metal Exchange (LME) publish the number of registered warehouse receipts every day. Previously, the futures warehouse receipts and inventory reports of the three major domestic commodity futures exchanges were published every Friday. Therefore, after the implementation of the "daily newspaper system" in the early stage, the information transparency of the market will be greatly improved.